Penny Stock Under Rs 20: IT Company Announces Strategic Tie-Up with Tata AIG to Offer General Insurance Products

In December 2024, FIIs increased their stake to 2.82 per cent compared to 2.74 per cent in September 2024.

Vakrangee Limited has announced a strategic corporate agency partnership with Tata AIG General Insurance Company Limited (Tata AIG). This collaboration will bring Tata AIG's extensive portfolio of general insurance products to customers through Vakrangee Kendra's widespread network. The agreement focuses on expanding access to vital insurance solutions, particularly in underserved and unserved communities, by offering a variety of products including health, motor, travel, and other general insurance options. This initiative aims to improve financial security for customers by making insurance more accessible and affordable.

Vakrangee Kendra outlets are branded, multi-service centres providing a range of offerings, including banking, insurance, ATM access, assisted e-commerce, e-governance, and total healthcare. With a significant 83% of these Kendras located in Tier-4 to 6 areas, the partnership with Tata AIG is poised to reach customers in the most remote regions of India. This strategic positioning will enable Vakrangee to bridge the insurance gap in these underserved communities, bringing essential financial products closer to those who need them most.

This partnership aligns with Vakrangee's commitment to expanding its product and service offerings through collaborations with leading business partners. The company aims to provide a comprehensive, one-stop solution for all customer needs. Driven by its new brand philosophy, "AB Poori Duniya Pados Mein" (Now the whole world is in my neighbourhood), Vakrangee aspires to become India's most trusted physical and online convenience store, bringing a world of services to the doorsteps of its customers.

About the Company

Vakrangee Ltd, established in 1990, is a technology-focused company that aims to bridge the digital divide. It operates a network of "Next-Gen Vakrangee Kendras," franchise-based, one-stop convenience stores offering a range of services to rural, semi-urban, and urban India. The company primarily focuses on BFSI services, including banking, insurance, and ATM facilities. Additionally, Vakrangee provides e-commerce and logistics solutions, such as assisted online shopping, healthcare, travel services, telecom and bill payments, and courier services, effectively catering to the diverse needs of its customers in underserved areas.

In Q3 FY2024-25, the company demonstrated robust financial performance with total income reaching Rs 6,863.0 lakh, a 31.7 per cent increase YoY, and profit before tax and exceptional items soaring to Rs 161.3 lakh, a 72 per cent increase YoY. For the 9M period of FY2024-25, the company maintained its strong growth trajectory with total income at Rs 19,429.6 lakh, up 31.7 per cent YoY, and profit before tax and exceptional items reaching Rs 590.6 lakh, a remarkable 110.1 per cent increase YoY.

The company along with its subsidiary Vortex Engineering, is set for growth. It has launched apparel lines, plans pan-India expansion and diversification, and aims for 100% district coverage by March 2026 with its Kendra network. "VISION 2030" targets 3 lakh+ outlets and 15,000+ ATMs, aiming for USD 1 billion in revenue and USD 150 billion in gross transaction value. The acquisition of Vortex Engineering provides backward integration. The company has raised Rs 162 crore and has approval for up to Rs 980 crore for expansion.

The company has a market cap of over Rs 1,900 crore and as of December 2024, the Life Insurance Corporation of India (LIC) owns a 4.41 per cent stake in the company. In December 2024, FIIs increased their stake to 2.82 per cent compared to 2.74 per cent in September 2024. The shares of the company have a PE of 300x, an ROE of 3 per cent and an ROCE of 7 per cent. Investors should keep an eye on this Small-Cap IT stock.

Disclaimer: The article is for informational purposes only and not investment advice.